Loonie soars in wake of new trade deal with United States and Mexico

Trump and Trudeau agree on a revised NAFTA deal

Trump and Trudeau agree on a revised NAFTA deal

The deal does not, however, address the removal of the steel and aluminum tariffs Trump slapped on Canada last spring or the softwood lumber tariffs imposed in 2017.

All in the past two weeks. Americans for Farmers & Families spokesman Casey Guernsey, a seventh-generation farmer, said the three-way deal showed Mr. Trump remembered his promise 'to stand up for rural America.

Mexico is exempt as long as its manufacturing growth doesn't exceed USA production, while Canada's applies to far more cars than the country produces.

Some likeminded business groups agree that Trump's in-your-face style, a far more confrontational stance than his predecessors deployed, deserves credit.

While much of the new USMCA trade deal is focused on exchanging consumable goods such as dairy and meat products, the automotive sector saw many changes.

Technology and retail companies also won protections in the new deal they hope Washington will vigorously pursue with China, where many US industries have complained of unfair treatment.

In Ottawa, PMO officials said there would be another cabinet meeting Monday and a news conference likely as well.

Trump said it was unfair and economically crippling to dairy farmers.

US National Economic Council director Larry Kudlow made the point directly in an interview with Fox News on Tuesday, saying the USMCA, along with ongoing US trade talks with the European Union and Japan, would give Washington "pretty much a united front among the major allies" in dealing with China.

Shares of American automakers traded marginally higher following this announcement. It's unlikely that will quadruple over the next four years.

Matthew Pottinger, the US official spearheading China policy on the National Security Council, told an audience at the Chinese Embassy last week that the United States and China were undeniably engaged in competition. Many trade analysts dismissed that rationale as preposterous.

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Whatever the legitimacy of his tariffs, by imposing and threatening them on national security grounds, Trump created leverage for himself.

Those rules require that a certain percentage of an imported vehicle's components be manufactured in the United States.

Critics of the trade agreement argued that by setting a minimum of 10 years of protection, the trilateral pact shields the pharmaceutical industry from future legislative attempts in the United States to shorten biologic drug monopolies. The University of Ottawa's Michael Geist points out on his blog that wording in the new trade deal would see Canada "rescind the CRTC policy with a requirement that all programs be treated equally". But Trump had abandoned the TPP on his third day in office.

"Trump was first fighting the whole world, but then we saw a new NAFTA, a new deal with Korea". Mexico gradually began to yield to the risk of losing access to America's market. China's other state media outlets all avoided analysing the possible impact of the deal on China.

Some lawmakers immediately expressed relief that Canada had been reinstated in the regional trading bloc.

The loonie soared higher in the wake of news that Canada has reached a deal to join the United States and Mexico in a new North American trade agreement.

Mickey Kantor, a former USA trade representative who is a partner at the Mayer Brown law firm, praised the negotiators for updating a pact that hadn't been changed in 24 years, to reflect the rise of the digital economy.

In his Rose Garden speech outlining the deal this week, Trump said the pact would "make North America a haven for medical innovation and development".

Morneau told members of the Vancouver business community that the United States-Mexico-Canada Agreement means Canada is now the only country to have deals with all its G7 partners but will continue its efforts to diversify trade around the world, including with China. And, he suggested, any gains for the United States have come at a cost. The breakthrough, coming when Canada cut into an accord agreed by Mexico and the U.S., buoyed financial markets and may provide a fillip for multilateralism too. "It's been a bruising period". "Canadian Foreign Minister Chrystia Freeland, for instance, has described the Trump team's USMCA negotiation approach as, at times, "troubling", completely unreasonable", and "unconventional". China aimed counter-tariffs on US agriculture products, for instance. Beijing responded by announcing tariffs of 5 percent to 10 percent on an additional $60 billion worth of USA imports. "And yet China can't seem to negotiate its way out", he said. These tactics, the USA charges, include cyber-theft and pressure on foreign companies to hand over technology in exchange for access to the Chinese market.

"This is going to be one of the most enforceable trade agreements we've ever had", one official said.

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